Real Estate investors looking for returns from both cash flow and appreciation continue to head towards Virginia for investment properties. Old Dominion is loved by real estate investors due to many factors including a strong diversified economy, booming population and natural beauty that drives year-round visitors! Easy Street Capital is proud to be a leading provider of investment property loans for real estate investors looking to build rental portfolios in Virginia!
Investment Property Loan Types
When it comes to real estate investing in Virginia, there are many markets and types of investment property loans to choose from. Virginia has a lot of older properties with great bones, but in need of renovators to restore them to their former glory. For investors adept at rehabbing older properties, hard money renovation loans are a perfect choice! These loans allow you to buy a property quickly and fund your renovation costs too! Once completed, you can either “flip” the property for a quick return or pursue the BRRRR Method by renting it out and then refinancing into a long-term, low-rate DSCR loan!
Investment property loans can be a useful tool for real estate investors, particularly when purchasing turnkey rental properties. The term “turnkey” refers to properties that are already rental-ready and require no further renovations. Move-in ready single-family and multi-unit homes, as well as fully furnished short-term rentals, can generate both cash flow and price appreciation. Long-term DSCR loans are generally fixed rate for thirty years, allowing investors to lock in a fixed interest rate while rents and appreciation continue to increase over time. This can be a powerful way to steadily build wealth through real estate investing.
Where To Invest In Real Estate In Virginia
Virginia is a large historical state in the mid-Atlantic and includes everything from urban markets in the north, rural historical towns in the middle and beachfront locales on the ocean. Virginia Beach is the state’s largest city and a popular tourist destination on the coast. Richmond is the capital of the state and the fourth most populous city. Arlington is a major suburb of the nation’s capital and home to a strong defense industry. Charlottesville is a historical city in the middle of the state and home to the University of Virginia. Finally, Norfolk is the third largest city and cultural center of the Tidewater region.
Virginia Beach
Virginia Beach is a beautiful city located on the southeast coast in the Commonwealth of Virginia. It is home to a diverse range of industries, including international headquarters, defense contractors and other locally owned businesses. Major employers include GEICO, VT, and Navy Exchange Service Command. The city’s unemployment has been cut in half in the past years, making it attractive for long and short-term rentals. According to the latest US Census Bureau, the population of Virginia Beach grew by 4.02% from 2020 to 2022. This was higher than the national average, indicating a steady increase in demand for rental properties.
Virginia Beach is also a sought-after tourist destination, renowned for its abundant attractions and scenic coastal beauty along the Atlantic Ocean. Visitors flock to notable landmarks such as the Virginia Beach Boardwalk, Cape Henry Lighthouse, and the vibrant Neptune Festival. The city’s delightful resort area, featuring sandy beaches and a bustling atmosphere, further enhances its allure. Additionally, Virginia Beach hosts a variety of exciting events throughout the year, including the East Coast Surfing Championships and the American Music Festival. These festivities attract a significant number of tourists, generating a strong demand for short-term rentals and vacation homes in the area.
The city is also located near the Oceana Naval Air Station. The Oceana Naval Air Station is home to all East Coast strike fighter jets, driving potential for medium term rental investors. Medium term stays, typically between 1-3 months, are popular in Virginia Beach. The personnel flying planes for the Oceana Naval Air Station are potential tenants for medium-term rentals. These visiting pilots and aviation professionals often require accommodation for extended periods, making them ideal medium-term rental tenants. Additionally, Virginia Beach’s appeal as a bayfront town attracts numerous visitors during the summer season, including those associated with the Naval Air Station.
Richmond
Richmond is the capital of Virginia and located on the east side of the state. According to the US Census Bureau, the population rose from 204,214 in 2010, to 229,247 in 2023, making it the fourth most populous city in the state. The city’s economy is diverse, with significant contributions from healthcare, education, and technology sectors. Cultural attractions, such as the Virginia Museum of Fine Arts, and the Lewis Ginter Botanical Garden attract both locals and visitors. Richmond’s downtown is a vibrant hub with a wide array of shops and restaurants, appealing to both tourists and residents.
Richmond is rich in history and is a great location for tourists. Richmond is often referred to as “River City” due to its location and view of the beautiful James River. Real estate investors can benefit from both short-term and long-term rental demand in the city, thanks to popular events like the Richmond Folk Festival, NASCAR races at Richmond Raceway and the RVA Street Art Festival.
Real Estate investors that have positioned capital in Richmond recently have seen tremendous returns. According to Redfin, the median sales price (property value) in Richmond in March 2021 was $342,000. Just 3 years later, as of March 2024, that number was $440,000. That is a massive increase in property prices in such a short period!
With convenient access to major metropolitan areas like Washington D.C., Baltimore, and Charlottesville, Richmond is an exceptional choice, particularly for real estate investors looking to invest in a growing market with significant potential for future development.
Arlington
Arlington, Virginia is a vibrant urban county location just across the Potomac River from Washington, D.C. This growing city is located near the capital and is home to 234,000 residents. The economy of the city is characterized by its diversity, with significant contributions from sectors such as healthcare, governmental defense, and education. Arlington is home to major employers like Rosetta Stone, The AES Corporation and PBS, which attract employees in need of long-term housing. Arlington is a popular place for residents who commute to Washington D.C due to its proximity (~6 miles away). Being located extremely close to the city brings young professionals in need of rentals, providing opportunities for investors.
There are many cultural attractions that appeal to both residents and tourists. Arlington is home to the Arlington Arts Center, Signature Theatre and other music events where the community comes together. People from out of state travel to Arlington for these events, providing plenty of opportunities for investors in real estate. According to the Zillow Observed Rent Index May 2024, the average market rent in Arlington is $2,800 per month. This is up $24 year-over-year, despite the general market slowdown. Arlington hosts various events throughout the year, including Marine Corps Marathon and Arlington County Fair, which bring in people who need short term rentals. With this steady rental market, diverse economy and growing population, Arlington is a promising market for real estate investors looking for high cash flow.
Charlottesville
Charlottesville is a historic city nestled in the heart of the picturesque Piedmont region. Known for its rich heritage and scenic beauty, Charlottesville offers a captivating blend of history, culture, and natural splendor. The city is home to the prestigious flagship University of Virginia. Charlottesville. This university is home to 26,000 students year-round. The city has a population of over 47,000. The city has a diverse economy that includes education, research, technology, and healthcare. Charlottesville’s downtown area is rushing with an array of historic architect, culinary delights, and boutiques. The city also boasts several parks and trails, including the popular Lee Park.
Real estate investors can take advantage of both long-term and short-term rental demand in Charlottesville. In addition to short term rentals, Charlottesville is a great destination for investors who specialize in student housing. The universities’ large population provides consistent demand for rental properties. Investors who focus on well-located properties and rent to reliable students can earn higher returns than with traditional long-term rentals.
Charlottesville’s economy is poised for continued growth in the foreseeable future. The city boasts significant employers, including the University of Virginia Health System and local government agencies. As the Charlottesville Economic Development Office, projections indicate that Charlottesville is set to create a substantial number of new jobs in the next few years. This will continue to strengthen its job market. With a high demand for housing and a thriving economy, Charlottesville presents an appealing opportunity for real estate investors seeking long-term appreciation and potential cash flow. The city’s growth trajectory and favorable market conditions make it an enticing destination for investment in the real estate market.
Norfolk
Norfolk is a vibrant coastal city located in southeastern Virginia, situated at the mouth of Chesapeake Bay. This quiant city is known for its beaches, gardens, and boardwalk. Norfolk’s cultural and arts scene thrives with attractions like the Chrysler Museum of Art and the Virginia Opera. Visitors are also attracted to the waterfront areas, including the Waterside District and Town Point Park, offer scenic views and recreational opportunities.
Norfolk, Virginia, is a beloved and growing, coastal destination that captures the hearts of beach enthusiasts. Its beaches and lively boardwalk create an inviting atmosphere, drawing visitors seeking the water. The blend of pristine beaches, bustling boardwalks, and seafood delicacies make Norfolk an attractive location for short-term rental investors. Weekend getaways and longer vacations are common as visitors flock from nearby cities such as Chesapeake Bay, and Virginia Beach. With its coastal allure and proximity to major metropolitan areas, Norfolk offers a promising market for investors in search of lucrative opportunities in the short-term rental industry.
According to AirDNA, a leading data provider for investors in short-term rentals, Norfolk is a market with potentials and pitfalls for investment properties. Pros include a solid regulatory regime friendly to vacation rental operators. Additionally, STR investors can earn big revenues during the summer busy season (>$4,700 on average in July just last year per AirDNA)! However, it also flags Norfolk as a highly “seasonal” market. Specifically, it is very popular during the summer beachgoing seasons. During the winter months, however, occupancies can be a little bit lower. Investment property owners in Norfolk should therefore have an approach to prepare and handle the offseason before acquiring.
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Ready to invest in real estate in Virginia? Easy Street Capital is top lender for loans for rentals both hard money rehabs and long-term rental properties.
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